The superannuation system reform package would save the equivalent of a 1 per cent superannuation guarantee (SG) contribution, but an increase to 12 per cent was still high on the government's agenda.
"The SG should go up from 9 to 12 per cent," Assistant Treasurer and Minister for Financial Services and Superannuation Bill Shorten said yesterday at the release of the government's response to the Super System Review proposals.
"Superannuation is one of the distinct national advantages of Australia," he said. "But it cannot be taken for granted. It has to be force fed until the numbers make sense."
Shorten said the reforms will save members a considerable amount of money over the long term.
"We estimate that in the long run these reforms will save Australians up to $2.7 billion a year in fees. This is a lot of money - you could buy a lot of Qantas 747 jets," Shorten said.
"It works out that if you are a 30 year-old earning $65,000 a year that you are $40,000 better off through the development of these reforms at 67.
"This is the equivalent to almost a 1 per cent increase in superannuation guarantee contributions for lower and middle incomes."
Shorten also said Australia's superannuation system was a great "business enabler" that would allow Australian companies to be less reliant on foreign funding sources.
He waved away criticism that businesses would suffer from the planned increase in the SG.
"When [former Prime Minister] Paul Keating moved from 6 to 9 per cent businesses also said it was not possible," Shorten said.
"If we don't move from 9 per cent to 12 per cent now, then in ten years time we are going to regret it.
"It will lead to greater hardship than going from 9 to 12 per cent."
